Validus Raises $404M Of Third Party Capital

January 11, 2013

Bermuda-based Validus Holdings Ltd. announced that its investment advisory subsidiary, AlphaCat Managers, Ltd., has raised $404.4 million of third party capital for investment in collateralized reinsurance and Insurance Linked Securities.

AlphaCat 2013, Ltd. is a special purpose vehicle formed to invest in collateralized property catastrophe reinsurance and retrocession on a worldwide basis. AlphaCat 2013 is capitalized at $230.0 million, with outside investors contributing $185.0 million or 80.4% of the funding and the balance being provided by Validus.

Validus also announced that $219.4 million of third party subscriptions were received in its ILS funds. The AlphaCat ILS funds invest in instruments with returns linked to property catastrophe reinsurance, retrocession and ILS contracts.

Ed Noonan, Chairman and Chief Executive Officer of Validus commented: “AlphaCat 2013 and the third party investment in the AlphaCat ILS funds reflect the continued importance of Validus’ franchise in the global property catastrophe reinsurance market.

“We are pleased with the significant level of investor support which reflects on the scale of Validus’ operations, the skill of our underwriting team and the AlphaCat infrastructure we have developed to manage third party capital.”

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